Zimbabwe's government announced yesterday that it was taking a first step
toward lifting patent monopolies on AIDS drugs by declaring the HIV epidemic
there a "state of emergency." HIV kills 300 people daily in Zimbabwe and 20%
of the population is HIV positive. Life-extending treatment including
antiretroviral medicines is unaffordable to all but the wealthiest people
living with HIV.

"The Zimbabwean government's action, though long overdue, is an imperative
first step to securing access to lowest cost supplies of quality, life-
extending drugs," said Allison Dinsmore of Health GAP. "AIDS is devastating
Zimbabwe. Squandering limited resources on high-priced drugs is unacceptable
when lower-cost, quality generics are available."

Zimbabwe appears poised to be the first country to issue compulsory licenses
for production of AIDS drugs. Compulsory licensing authorizes the
manufacture of a patented medicine without the permission of the patent
holder. By authorizing multiple suppliers of a patent-protected drug,
compulsory licensing creates competition, driving prices down and increasing
the number of people who can benefit from life-extending, essential
medicines.

Activists noted that the 6 month time limit to Zimbabwe's state of emergency
should be eliminated. "Unfortunately the crisis caused by AIDS in Zimbabwe
will persist after a short half year," said Brook Baker of Health GAP. "6
months is too little time to extract the full benefits of compulsory
licensing on price reductions."

Activists predict that the price reductions that will accompany compulsory
licensing will exceed the limited, conditional price cuts that have been
offered by brand name drug companies.

AZT+3TC (brand name: Combivir), for example, two drugs in a typical
three-drug combination regimen for treating HIV, is available for as little
as 75 cents per day from generic Indian manufacturers. But GlaxoSmithKline's
patent monopoly on Combivir in Zimbabwe means the cheapest price--only
available to HIV-positive people who meet Glaxo's program criteria--is
almost three times as expensive at $2.00 per day.

"International public health organizations like the WHO and UNAIDS must
provide the technical guidance necessary to assist Zimbabwe in fast-tracking
access to affordable, generic versions of patented AIDS drugs," said Phillip
Machingura, Health GAP activist and native of Zimbabwe. "Too many people
have died needlessly with AIDS, waiting for treatment access--positive
change can't come fast enough."

Zimbabwe's announcement comes just after its award of $5.3 million
from the first round of grants by the new Global Fund to fight AIDS,
Tuberculosis, and Malaria, and just before the June meeting of the World
Trade Organization's TRIPS Council.

The TRIPS Council, the WTO body monitoring implementation of WTO rules on
patents, is wrapped up in debate on the issue of patents and drug access for
countries like Zimbabwe, that have limited-to-no capacity for local
production of medicines. WTO rules stipulate that compulsory licensing must
be used predominately for supply of the domestic market; countries like
Zimbabwe without adequate domestic capacity will be unable to import new
drugs that are patent protected in manufacturing countries like India and
Thailand, once TRIPS rules are fully implemented.

U.S. trade negotiators are opposing solutions to this problem proposed by
developing countries, including Zimbabwe, that would streamline access to
drugs exported under compulsory licensing in producing countries. Instead
the U.S. is calling for a limited, conditional moratorium on WTO dispute
settlement regarding this issue, a proposal activists call a non-starter.

"The USTR must support Zimbabwe and other developing countries' proposals
for ensuring that affordable generic drugs are available to all impoverished
countries facing critical health problems--not just the handful of countries
with domestic capacity for drug manufacture," said Dr. Alan Berkman of
Health GAP.